inflation is taxing idle cash. Deploy it using high yield short term real estate investments. Real estate loans are a great way to do it with minimal risk. 3-6 month max terms, 12% fixed rate, 10 points plus $1500 in junk fees. keep the average loan amount below $100000 to diversify the risk. Don’t loan above 60% of the loan to value of the property. Stick to residential or small balance commercial loans, if you do a junior lien mortgage (anything other than a 1st Trust Deed). Don’t worry about credit or income, you have collateral. File a notice of default immediately after a 30 day delinquency.
they don’t pay, take the house. loan to own is not my strategy, but I respect it.
ex: $75,000 2nd trust deed. 10 points= $7500 plus $1500 in junk fees is $9000 plus interest at 12%. Make the loan for 3 months, thats $9000 in fees plus about $2100 in interest. $11,100 in interest for 3 months. Thats about 39% yield (Apr)compare it to .10 apy in a savings account. Use the same $100,000 3 times a year and it will make you $33,400 in interest. Do the math with $1,000,000 deployed in loans. I have been making real estate loans for 20 years, only been burned twice. And it was because i deviated from my model.